Headlines

Greece’s central bank governor has warned that a package of pre-electoral handouts due to take effect next week could derail the country’s budget target agreed with its bailout creditors, the Financial Times reported. Yannis Stournaras’s warning came as parliament on Wednesday approved hastily prepared measures that the leftwing Syriza government hopes will boost its popularity ahead of EU parliament elections on May 26. The package of cuts in value added tax and a pension bonus would cost around €1bn, according to the finance ministry.

A Chinese display product maker has been questioned by the Shenzhen Stock Exchange on its cash usage, joining a growing list of firms whose financials are being scrutinized by the nation’s regulators, Bloomberg News reported. Beijing-based Tunghsu Optoelectronic Technology Co. was asked by the bourse to explain the rationale in paying high expenses on its debts when it reported ample cash in 2018, according to a statement on Wednesday. The company was also required to spell out the reasons for issuing convertible bonds when it reported 19.8 billion yuan ($2.9 billion) cash as of end-2018.

Turkish banks disagreed on almost everything with potential investors when they met for the first round of talks about unloading a mountain of bad loans, according to people who were at the gathering in Istanbul last week, Bloomberg News reported. The deadlock between potential buyers, including Goldman Sachs Group Inc. and Bain Capital LP, involved the price and structure of any transaction, some of the people said, asking not to be identified because the gathering was private. Attendees couldn’t even agree on the definition of a non-performing loan, one of the people said.

The government is open to providing more powers to the Reserve Bank of India (RBI) to direct lenders to take action on stressed assets, a senior finance ministry official told ET. There is a growing view in the government that there has to be some regulatory supervision over debt resolution by the RBI, The Economic Times reported. “It cannot be left to the discretion of banks — there has to be some regulatory supervision, and that should be from the banking sector regulator,” said the official.

Thomas Cook Group Plc’s crisis deepened as the debt-laden travel group warned of another tough summer and said it will get a 300 million-pound ($385 million) rescue loan only if it makes progress with the sale of its airline, Bloomberg News reported. The stock fell to the lowest since 2012 Thursday and the bonds hit a record low after the world’s second-biggest tour operator posted a 1.1 billion-pound writedown at a U.K. arm hurt by the Brexit saga.

Homebuyers and lenders of debt-laden Jaypee Infratech Thursday started voting on state-owned NBCC's bid to acquire Jaypee group's realty firm and complete the construction of over 20,000 flats, Business Standard reported. The voting process will end on Sunday and the outcome would be declared on May 20. The financial creditors would vote for the second time on the resolution plan for Jaypee Infratech, a subsidiary of Jaiprakash Associates Ltd (JAL). On May 3, the financial creditors rejected Mumbai-based Suraksha Realty's bid through voting process.

The number of insolvencies jumped 30 per cent in the Red Deer region in the first three months of the year compared with 2018, the Red Deer Advocate reported. Insolvency numbers jumped 15 per cent provincewide, and just a year ago, the trend was moving in the right direction. Alberta’s insolvency figures are bleaker than the nation’s as a whole, where such cases were up six per cent in the first quarter. MNP senior vice-president and insolvency trustee Donna Carson said last year’s numbers likely improved because workers laid off earlier in the slump were finding jobs.

The Commercial Court of Khanty-Mansi Autonomous Area has postponed a bankruptcy case against UTair airline until June 11, according to court records. In April, the air carrier said that it had cleared off a debt to the Financial Company Flash Light Capital, one of the applicants seeking bankruptcy of UTair, RAPSI recorded. In March, the court consolidated four bankruptcy petitions filed by the Financial Company Flash Light Capital, Hydropromenergostroy, Inter and Yugan-Union card companies against the airline into a single case.

Lebanon is eyeing the debt markets nervously. The country, which is lining up a $2.5bn bond sale partly to pay off $650m coming due on Monday, was hoping to capitalise on improved investor sentiment after it finally formed a government in February. But the timing is unfortunate — that new cabinet still has not come up with a budget for 2019. Emerging market investors are in a generally forgiving mood.

Brazilian telecommunications firm Oi SA reported a first-quarter net profit of 679 million reais ($170 million), in a quarter its revenue continued to fall, Reuters reported. This compares to a profit of 30.5 billion reais in the first quarter of 2018 after Oi reached an agreement with creditors in an in-court debt reorganization of the company. A debt for equity swap and a new capital injection were approved last year. The capital raise was completed in January.